UK – Investigation of the private motor insurance market

The Office of Fair Trading (OFT) has referred the UK private motor insurance market to the Competition Commission for further investigation over fears that drivers are treated unfairly by insurers.

 

The motor market now faces a wait of up to two years before the Competition Commission takes its final decision, which could lead to restrictions on the motor insurance trade.

 

OFT chief executive Clive Maxwell said: “Having publicly consulted on our provisional decision, we are still of the view that there is no quick fix  to these problems, and that a more in-depth investigation by the Competition Commission is therefore appropriate.”

 

The decision stems from a report in May from the OFT, when it published a market study that said that the insurers of at-fault drivers had little control over how repairs are made to not-at-fault drivers. The body said that this let insurers of not-at-fault drivers, brokers, credit hire firms and repairers hike costs for rival insurers.